Desigual closed the year 2017 with a turnover of 761 million euros (937
million dollars), a decrease of 11.5 percent compared to the previous
year. EBITDA
for the year stood at 119 million euros (146.5 million dollars) and net
profit was 47 million euros (57.8 million dollars), a decrease of 28
percent and 33.3 percent respectively, compared to the previous year.

The company attributed negative results to the decrease in sales in
European markets -which account for almost 90 percent of total
sales-especially in indirect channels and the rationalization of the
network of distribution that the company carried out in recent months.

Desigual aims for a turnaround in FY18

In 2018, Desigual plans to expand its geographical presence in markets
with growth potential such as Latin America, where it has experienced a
growth of 18 percent over the previous year. The company also plans to
invest in 50 new store openings and renovation of over 50 stores in the
coming months. It considers that the company- owned digital channel will
also be an important growth channel, where Desigual posted a growth of 14
percent.

“In 2018, Desigual aims to change the negative trend in sales. We are in
the middle of a transformation that started in 2015 and we are going in the
right direction," said Alberto Ojinaga, Chief Corporate Officer, commenting
on the company’s strategy amid negative annual
results.

As a part of its brand repositioning plan, the company has roped in
Jean-Paul Goude as Artistic Advisor to lead the transformation of the brand
image.